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    Value WorldVolume 32Number 2Summer 2009

    Published by SAVE International

    Inside this issue:

    Process

    and ProductOptimization

    Using Value

    Engineering/ValueManagement

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    written by A. K. Medallah, emphasizes the perception ofthe capabilities of members during VE workshops andthe impact of motivational outcomes by evaluating threemain actors using Expectancy eory, name y: (1) mem-er expecte capa i ity (E ort); (2) perceive outcome

    expected (Outcome), (3) desirability or undesirabilityweight of each outcome (Valance). An empirical study

    was con ucte on 21 VE practitioners in a Sau i Ara iangovernmenta agency. As t e resu t, t is paper conc u ethat by optimizing and updating tools and skills requiredby facilitators in VE workshops can lead to a better out-come o VE stu y.

    Furt ermore t e secon paper, written y Rona JTanenbaum, Ph.D., CVS, PE, GE, F.ASCE and GordonJohnson, PE, describes how U.S. public agencies can improve t eir operating proce ures in t e quest to ecomet e Best-in-C ass in t eir area o expertise y a ress-

    ing three critical points: modifying the delivery methodsproviding more accurate cost estimation, and construct-ing a c ange or or er management. As a conc usion, t epaper provi es recommen ations or per orming success-ful Best-in-Class workshops for any agency, i.e. to sharesa goal to perform self-inspection on the operations, toaccept c anges, an to possess a sincere esire to e etter, i not t e est.

    e third paper, written by Ferenc Ndasdi, Ph.D.CVS, FSAVE, discusses how the value methodology cane use e ective y in t e ana ysis o supp y c ain pro-

    cesses. Base on Hungarian an internationa experiencehe argues that it is important to ensure effi cient coop-eration among vertically related units regarding deliverycontracts or even regar ing t e R&D activities an t ep anning o investments, w ere va ue ana ysis va ue engi-neering can facilitate significantly a more effi cient opera-tion of the entire vertical structure.

    e ast paper in t is e ition, written y T. Yuri Zag oe an Herya i Pamung as, provi es a genetic a go-

    fter a series of innovation discussions, the theme ofengineering optimization is chosen for this summer issueas another beneficiary of value engineering/value man-agement app ication. Optimization is t e action o e-signing and developing systems to gain maximum advan-tage of the available resources or, in other words, is theproce ure(s) use to ma e a system or service as e ective

    or functional as possible. In the art of systems design andoperation, it is o crucia importance to re uce costs anto improve performance, quality, system reliability andon-time delivery of a project/product.

    During t e esigning o a pro uct or manu actur-ing or early phases of construction projects, some key is-sues and constraints arise in a large number of conflictingpressures regarding the engineering/construction design,operation, cost, safety, environmental issues, etc. Identi-cation o esign optimization in a system turns into a

    necessary attribute to create value in the form of produc-tivity, performance, and competitiveness. In this sense,va ue engineering va ue management is app ie as a tooand as a process to optimize the value of design, engi-neering, services an con guration aspects. e initiafunctional designs and value engineering/value manage-ment workshops utilize a guided process to lead the teamt roug t e wor s ops wit t e o jective to maximizethe expected output.

    Process and Product Optimization

    is issue of Value Worl presents four selected papersfrom SAVE Internationals 2009 Annual Conference, the11th International Conference on Quality in Research,and the Value Worl journal submission, to stimulate a

    iscussion an to exp ore various optimization systemsemployed in the context of construction and manufac-turing industries.

    e rst two papers examine t e met o s an ac-tivities for providing the value engineering/value man-agement wor s ops a maximum output. e rst paper,

    Process and Product Optimization Using

    Value Engineering/Value Management

    EDITORIAL

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    rit m mec anism to e use in creating an optima ayoutesign, wit regar to materia an ing in a manu ac-

    turing storage area, that affects the delivery time and costeffi ciency. is model optimizes the stock plate storagearea having various types of plates, and every single plate

    as a unique imension an i ting intensity. In or er to

    optimize the process, crossovers and mutations are ap-plied to define a better solution with better fitness valuesas shown in a case study at a heavy equipment manu-acturer in Ja arta. e corre ation etween optimization

    an va ue engineering is s own in t e va ues o tainefrom the genetic algorithm, which has been applied inthe real storage condition.

    I hope this edition of Value Worldconveys some newinsig ts in t e way we con uct our va ue met o o ogystudies. Your valuable contribution and feedback are im-portant to the success of our journal as it will guide thejournals future development.

    Wit warmest regar s rom e itoria es ,

    Dr. M.A. BerawiFaculty of Engineering

    niversity o In onesiaJakarta 16424

    Indonesia

    Board the QueenMary for a

    Value Adventureon the High Seas!

    Attend SAVE Internationals

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    June 6 - 10, 2010on theQueen Maryin

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    Build skills at pre-conference work-

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    ference updates: www.value-eng.org.

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    Measuring Perceived Capability & Motivation vs. Experience

    in Value Engineering Workshops Using Expectancy Theory

    A. K. Medallah

    Abstract

    e re ations ip etween e aviora science an engineer-ing practices is becoming substantially strong. Value engineer-ing (VE) practitioners; deal with humans on daily basis insideVE workshops, during information gathering or implementa-tion p ases. ese peop e vary in emotions, experience anlevel of motivation. is paper is intended to survey the per-ception of members capabilities during VE workshops and

    the impact of motivational outcomes expected. is was stud-ie y measuring t ree main actors (1) mem er expecte ca-pability (Effort); (2) perceived outcomes expected (Outcome),(3) desirability or undesirability weight of each outcome (Va-lance). e methodology of the paper was done by using thewe - nown Expectancy eory as a asis o measurement o-cusing on non-monetary actors t at in uences mem ers sig-nificantly. An empirical study was conducted on 21 VE prac-titioners in a Saudi Arabian governmental agency.

    Keywords

    otivation, capability, value engineering, Expectancyeory

    Introduction

    VE is a problem solving methodology which magnifiesproblems by determining basic functions of project/productand emphasizing symptoms with potential qualitative en-

    ancements. VE is a systematic team ana ysis approac ocus-ing on i e cyc e costs improving unctions, qua ities an e-yond doubt costs (Al-Yousefi, 1998). Recently, in large firmsin Saudi Arabia the application of VE studies becomes a man-

    atory proce ure or projects excee ing a certain cost.e essence o VE wor s ops is to ave a participative

    team effort which enhances creative solutions to problemswith all concerned parties involved. VE workshops are people-incentive an ave to e contro e wit u regar to peop esac groun s, cu tures an intents. o motivate peop e in VE

    workshops the management has to understand their behav-ior. In fact, management has to set their own procedures in

    ow to motivate an encourage peop e to e creative in VEwor s ops. Many contemporary t eories are ocusing on u-

    man behaviors in a sense to improve their productivity, likeMaslow Hierarchy of Needs, Herzberg Hygiene, AlderferExistence Relatedness and Growth ERG, Equity eory, andVroom Expectancy eory (Jones & George, 2008). As rsdeveloped by (Vroom, 1964), Expectancy eory is a processt eory o motivation. It as e a major position in t e stu yof work motivation (cf. van Eerde and ierry, 1996) and hadserve as a ric source or t eoretica innovations in varioudomains, such as organizational behavior and compensation

    (Law er, 1971). e a vent o Expectancy eory is ow tomotivate people using intrinsic measurements, such as, em-p oyee recognition, supervisor praising, training an improvements in the work field. ese factors are all considered non-monetary ecause management oesnt compensate emp oyeedirectly. Non-monetary factors are considered a Needin moso t ose t eories mentione a ove, name as e -actua ization, Esteem, Belongingness(Maslows), or Growth, elatednesin (A er ers).

    Problem Statemen e intention o t is paper is to i enti y intrinsic measure

    ments in how to motivate people and make them more com-mitte to VE wor s ops y non-monetary outcomes. is wasdone by searching for cognitive problems rather than explicitones a ecting t e per ormance o mem ers coming rom posi-tive and negative expected outcomes. e survey tested 21 VEpractitioners to measure ow t ey perceive t eir own capa i -ity and the expected outcomes, measuring that against theireve o experience. e resu ts are to en ig ten managementto understand a better approach for managing VE workshopswith concentration on people not the process.

    Value Engineering Workshops

    e most important p ase in any VE stu y is t e wor -shop, which is a team effort meeting gathered to do functionaana yses an generate i eas. e essence o a VE stu y is etting members stride with their thinking abilities to create in-novative i eas an generate app ica e a ternatives, t is onethrough functional analyses or generating ideas. is can beaci itate y a owing a com orta e environment an en-

    hance productivity by the outcomes of the work shop. epro uctivity o t e peop e invo ve in a wor s op is a ecte

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    y exp icit actors a aci itator can monitor at a g ance ancognitive problems which are implicit and are very diffi cult tocontrol. Examples of explicit problems are external and inter-nal physical environments of a workshop, tools and skills usedand pays and bonuses for team members. Cognitive problemsare coming rom t e ai y jo t e emp oyees, reactions rom

    a manager or wor team an ami y pro em a o t ese areexamples of factors cognitively or intrinsically affecting mem-bers. Another intrinsically motivating factor is the workshopitself, the extent of dialectical negotiations to throw ideas andnot criticizing them once generated, or knowing that the im-plemented results are only biased ideas or management-influ-ence ones.

    Participating Members

    e project un erstu ie etermines w o is usua y in-volved in the workshop. A facilitator is in charge of leadingthe workshop, members perform the analyses and idea genera-

    tions, and stakeholders may assign a representative to validateresults. It is not always recommended that only the bothered[sic] project teams are t e ones wor ing in t e wor s opsa t oug t eir contri ution is essentia . Invo ving peop eoutsi e t e project team may a ow a room or t in ing out-side-the-box which will enlighten the project team with morealternatives and possible gaps to study. A facilitator should al-low a room for controlled discussions and avoid members thatwill modify the description of the problem of the project tocom orta y t is iscip ine (Kau man, 1998). is invo ve-ment o mu ti- iscip inary teams wit i erent ac groun s

    from inside or outside the organization can influence the im-plementation of ideas and the way the ideas being criticizedand generated.

    Management Role

    e management team must decrease their level of controlover t e wor s ops; t ey s ou not e invo ve to reso vepro ems o cost re uction impacts, a t oug , t eir participa-tion in evaluation and presentation phases could be preferable.A contribution during the creativity phase may be useful, butthe main responsibility of management is to assure the processis going to be in the best interest of the organization and mem-

    bers have a good environment to generate their work with set-ting proce ures or pro uce more i eas an a ternatives. eseproce ures s ou e associate wit outcomes t at are con-sidered valuable to members recognizing non-monetary out-comes and controlling what is outside the facilitator scope ofcoverage.

    qually important is selecting the level of the team mem-ers t at ave a common actor among t eir cu tures, e ie s

    an management eve . e num er o participants attempt-e to ave every iscip ine represente on t e team cou e

    more arm u t an s ipping ot ers (Woo ea , 1998). eselection of participants should be in regard that all membersshould have the authority over their decisions without beingaffected by other members in or outside the workshop to havebetter unbiased ideas.

    Facilitator Role

    A aci itator a ministers a we p anne strategy in i erent problem situations before and during the workshop (Norton & McElligot, 1995). Certainly, the skill of facilitator withthe methodology of the job plan provide a solid foundationfor success (Miles, 1972). e selection of a facilitator for aVE stu y s ou e in uence y t e can i ates a i ity toempat ize wit t e socia , emotiona , inte ectua , an tec ni-cal content of the workshop (Woodhead, 1998). Woodheadpresented a model that can be used to design a job specifica-tion for the selection of the appropriate facilitator to suit a

    particular workshop. Some of them where:

    e facilitator must have an adequate capability to main-ain team creativity-borne behavior,

    He should be aware of the sources of information,

    He must create a culture of trust among all members,

    He must review the procedures of the organization tonow what can affect members,

    He must c at wit team mem ers an measure t e extenvu nera i ity on t em w en eaving t eir actua wor

    uties.Create a synergic environment and allow for quality conri utions rom mem ers,

    He is also responsible in the early beginning of the work-hop to explain to members how they will not be affected

    by others especially their actual work supervisors.

    Motivation Methods

    In general, productivity signifies the measurement of howwell an individual uses its resources to produce outputs frominputs. Motivation is the key skill to enhance this productiv-

    ity, by understanding what encourages a member to be en-gage in any in o e avior. ere ore, motivation as een

    e ne as a p ysica or psyc o ogica rive to o tain t e nee sto satisfy ones needs (Maloney, 1986). A vast amount of stud-ies have been made in motivating people, whether in Needeorieswhich implies that a person has a high need for seek-ing achievement, affi liation and power (McClelland), or Content eories which implies that a human needs change withtime or wit is experience eve . However, Content eoriesare e ective or peop e w o want to ocus t eir carriers in a

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    specia ize usiness- ine; i.e., va ue engineering. Expectancyeory has the tendency to allow for changes with time, it canbe adapted to any outcome perceived by people as long as theoutcome is expected and the valance was measured properly.

    A er er (1972) c assi e t e persons nee s w ic requireintrinsic motivation exp icit y y t ree actors is Existence,

    Relatednessand personal Growth. In a creativity phase, manag-ers who employ managerial practices that crush their employ-ees intrinsic motivation or their internal motivated desireswi conc u e wit an imp ementation p an t at is ar awayrom rea ity an rom t e aim o t e wor s op. A stu y y

    Ama i e & eresa (1983) irect y teste t e ypot esis t atintrinsic motivation is conducive to creativity and extrinsicmotivation is detrimental. Seventy-two young adults partici-pated in a creative writing test in individual laboratory ses-sions w ere peop e a een as e to write two rie poems.Be ore writing t e secon poem, su jects in an intrinsic ori-entation condition completed a questionnaire that focused on

    intrinsic reasons for being involved in writing. Subjects in anextrinsic orientation condition completed a questionnaire thatocuse on extrinsic reasons. Poems written un er an extrinsic

    orientation were signi cant y ess creative t an t ose writtenin t e ot er two con itions. VE wor s ops are more impor-tant than writing poems; when members are intrinsically mo-tivated their creative ability will be highly dependent on thepersons way of cognitive expansions to generate ideas and hiscognitive ana yses o pro ems. Un erstan ing w at woueep a mem ers min usy can in uence w at is require

    from him to generate creative ideas or analyzing of functions

    or producing alternatives during the workshop. Although, ex-trinsic motivators are essential, intrinsic motivators have thegreater e ect on peop e. VE practitioners ave to rea ize t atmem ers wi generate etter i eas w en t ey are interna ymotivate to o so.

    xpec ancy eory

    xpectancy eory expresses that the more attractive theper ormance o a tas , t e more motivate t e wor er wi eto per orm it (Ma oney, 198 ). e greater t e c a enge inthe hardness to identify basic functions of problems or find-

    ing other alternatives induced in a VE workshop, the greaterthe motivation that the member will perceive to do the joban come up wit new so utions. Expectancy eory suggestst at a ig y motivationa wor c imate requires strong ex-pectancies, instrumenta ities an va ance. Law er ivi e t econcept of expectancy into two specific types in the mind ofthe individual. First, each behavior has associated with it anexpectancy or belief about the probability of success. Second,certain outcomes associate wit every e avior. e na e e-ment in t e expectancy mo e is t at t e attractiveness or va-

    ence o outcomes (Lau er, 1983). e question is ow attractive or unattractive it is to an individual is determined by theparticular set of values an individual holds and reflects manyfactors in the individuals life. Expectancy eory argues thait is important to measure the attitudes individuals have in order to diagnose motivational problems. In Laufers hypotheti-

    cal model to measure motivation:

    = (EP) [(PO)(V)] . (1)

    Where,= Motivation level of workers

    = Effort exerted by workersP = Performance level measured from outputsO = Outcome received form effort exertedV = Va ance o t e outcome perceive y wor ers

    aufer (1983) included in his study on labors (bricklay-

    ers) that the work motivation scores are determined by mul-tiplying the strength of the belief that the effort leads to per-formance by the sum of the beliefs that the performance leadsto outcomes weighted by the attractiveness of the corresponding outcomes. Every VE mem er e ieves t at an e ort spenea s to per ormance expecte , an eac per ormance as anassociate outcome t at wi vary in its va ance epen ing oneac mem ers own perception; i.e., a mem er w o is generat-ing 10 e ective an creative i eas e ieves t at it too im to

    o some ar e ort to pro uce t ese i eas; t us, e per ormsvery we uring t e wor s op, so e, in return, expects a non

    monetary outcome in t e orm o praise rom t e aci itatorw ic e perceives as a va ua e comp iment e intrinsica ynee e to ee e as accomp is e a goa or t at e as con-tributed positively to the success of the project.

    Motivation and Experience

    xperience is directly related to how much work peopleperceive themselves capable of doing; it has also another rela-tion to the motivational impact of the work outcome. A studymade by (Bartkus, Hartman, and Parent, 1994) to investigatethe trade-off between motivation and experience focuses on

    travel services. It concluded that highly experienced but lesmotivated travel agents performed no better than highly moti-vated but less experienced ones. ey [concluded] that recruit-ing ecisions s ou e ase on ong-term consi erationan t e interna competencies o t e agency t roug manage-ria imp ications. Long-term consi erations an competenciecan e we manage y t e certi cation programs; e.g., SAVEInternationa s certi cation program. is paper consi ermem ers eve o experience an t eir perceive capa i ity ast e major in uence to e ig y motivate .

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    rst section was sca ing t e rate o occurrence o a t e varia es in a e 1.

    Table 1. Posive and Negave Movaonal

    Outcomes of the VE

    Posive

    Feeling of accomplishment

    Supervisor parsingHigher points in SAVE

    Skill development and learning

    Negav

    Blamed for leading duty

    Work team will be angry

    Personal ideas not implemented

    Final report not implemented

    is was measured by a scale, where, always occurs = 5usually occur = 4, often occur = 3, sometimes occur = 2, neveroccurs = 1.

    e other section has two parts: one is rating valance ofpositive outcomes as, always desirable = 5, usually desirable =4, often desirable = 3, sometimes desirable = 2, never desirable= 1.

    e second part, rated the valance of negative outcomesas, never desirable = 5, sometimes desirable = 4, often desirable= 3, usually desirable = 2, always desirable = 1.

    Results

    e ee ac came rom 21 engineers wit no missingva ues, w ic meant a 2% net response rate. e majority ot e samp e as s own in Figure 1 ( e ow) as 12 years oexperience. A o t e respon ents were wor ing or t e samegovernmenta organization: 7 civi , arc itectura , mec anica , 3 e ectrica , 1 io me , 1 computer, an 1 systems engineers s owing in Figure 2 (previous page, ottom). One o

    Figure 1 - Respondents level of experience

    Paper Methodology

    is paper classifies the sample based on years of experi-ence and studies their capabilities, relating them with motiva-tiona impacts, existence an va ance rom t e VE outcome.

    o i enti y ow intrinsic measurements o motivation wi emeasured, the Laufer model will be used to determine peoplesproductivity in VE workshops by measuring the perceived ca-pability of the members and measuring the motivational out-comes t at are more i e y to exist at t e organization wit t eva ance o t ese outcomes. In 2007, 50 questionnaires weredistributed to employees of the organization under consider-ation hand-by-hand or via e-mail. e questionnaire had threesections:

    Genera :t is section is measuring genera in ormation orespondents i.e. level of experience.

    Capability:this section is measuring the level of produc-

    ion members perceiving they are actually capable of per-orming:

    I ea generation: t is measure y a sca e o quantityo i eas generate starting rom 20 an a ove = 5, 20 11 = 4, 10 6 = 3, less than 5 = 2, 1 idea = 1.Functional analysis:this is also measured by a scale ofquantity, where, more than 15 = 5, 15 11 = 4, 10 = 3, ess t an 5 = 2, 1 unction ana yze = 1.Pro ucing a ternatives: t is is measure y a sca eranging from always do = 5, usually do = 4, often = 3,sometimes = 2, never = 1.

    Motivation:t is section contains some possi e negativend positive outcomes that might exist and measures the

    valance of each outcome is perceived by all members Ta-ble-1.

    is section was split into two: one to measure the out-come expecte an t e ot er to measure t e va ance o it. e

    1)

    2)

    3)

    Figure 2 - Respondents specializations

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    t em was a Certi e Va ue Specia ist(CVS), another one was not certi-fied at all, and the rest of the samplewere a Associate Va ue Specia ists(AVS). is indicates that the samplesize s ou e we ami iar wit t e

    VE methodology and what amount ofwor expecte rom t em.Figure 3 (right) shows clear varia-

    tion on t e extent o ow mem ersperceive themselves capable of gen-erating i eas wit a most itt e varia-tions especially in mid ages to analyzefunctions or produce alternatives. egroup o ess t an our years o experi-ence perceives a mid capability rangeor a t ree actors. e group o 7 years

    of experience perceives a high capability to gen-

    erate i eas, ut ow in unctiona ana yses analternatives generation. e group of 8 12years o experience perceives a mi range in i eageneration and producing alternatives and a lowunctiona ana ysis rate. e group o 13 20

    years of experience perceives a mid range of ideageneration and functional analysis with a highrange o pro ucing a ternatives. e ast groupfrom 20 30 years of experience perceives a

    ig range in i ea an a ternatives generationbut low functional analysis capability. (See Table2, previous page, e ow.)

    As an average of sum of all capability ratingsFigure (rig t) s ows t e tota average capa i -ity rating, which indicates that the most critical

    Figure 3. Perceived capability of the members

    High

    Mid

    Low

    Table 2. Capability Analysis

    ears

    Experience

    Idea

    Generaon

    Funconal

    Analysis

    Alternaves

    Generaon Comments

    - 3 id id Mid This group perceive themselves capable, but not to the level of

    experience people

    - 7 High Low Mid This group is lowering the percepon of their own capability in

    analyzing funcons, but can sll think outside the box

    8 - 12 id id igh This group is developing a sense of knowledge in the processes andis well familiar with similar products or projects

    13 - 20 id id igh s prev ous.

    0 - 30 High Low igh This group perceives high capabilies, but low in knowing processes

    and other alternaves

    0.5 and below = Low, 0.5 - 0.69 = Mid, 0.7 and above = High

    Idea Generaon = Capability of throwing large number of ideas (quanty, not quality); this depends on thinking outside the box.

    Funconal Anlaysis = Capability of analyzing funcons of the product or project; this depends on level of experience or products or projects under study.

    Alternaves Generaon = The Capability of replacing a product or project parts or as a whole by other alternaves; this capability depends on knowing other similar

    products or projects.

    *represents the scale of negative outcomes expected.

    Figure 4. The relationship between Capability VS. Motivational Outcomes.

    High

    Mid

    Low

    High*

    Mid*

    Low*

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    Kau man, J. Jerry (1998). Va ue Management: Creating Com-petitive Advantage. USA. omason Crisp Learning.

    Woodhead, R., M. (1998). Can Any Facilitator Run a valuengineering Wor s op? Sc oo o Construction & Eart

    Sciences, Oxford Brooks University, UK.

    Norton, B.R. and Mcelligott, W.C. (1995). Value Manage-

    ent in Construction, MacMi ian Press, Lon on, UK.Mi es, L.D. (1972). ec niques o Va ue Ana ysis an Engi-

    eering, McGraw-Hill, p295.

    Maloney, William F. (1986). Understanding Motivation,American Society o Civi Engineers, Journa o Manage-

    ent in Engineering vol.2 No. 4.

    Amabile, & Teresa, M. (1983). Motivation and Creativity: Ef-ects o Motivationa Orientation on Creative Writers, Pa-

    per presented at the Annual Convention of the AmericanPsychological Association, USA

    Lau er, A exan er & Jen ins, G. Doug as (1983). MotivatingConstruction Productivity: Learning From other Disci-plines, Project Management Quarterly.

    Bart us, Kennet R. Hartman, Cin y L. & Mic ae Parent,C.R. (1994). e Performance Trade-off between Experi-nce and Motivation: Its Impact on Travel Service Selling.

    Journal of Travel Research, Vol. 33, No. 2, 15-20.

    About the Author

    Abdullah Khalid AlMedallah, AVS, Yellow Belt-Six Sigma is a

    civi engineer emp oye y t e Roya Commission o Ju ai anYanbu in Saudi Arabia.

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    est-in-Class:

    An Executive Level Application of the Value MethodologyRonald J. Tanenbaum, Ph.D., PE, CVS, GE, F.ASCE and Gordon Johnson, PE

    Abstract

    Sometimes we, as va ue met o o ogy practitioners, o notsee all of the opportunities to which the methodology, or evenselected components of the methodology, can be successfullyapp ie . en, a ong comes a orwar -seeing agency t at asa goal to self inspect its operating procedures and to changethese procedures in its quest to become the Best-in-Class intheir arena of practice and service to the public. is was the

    case wit t e Metropo itan Water District o Sout ern Ca i-fornia who approached Value Management Strategies, Inc. tolead a series of unique workshops addressing three critical areasw ere t e District saw opportunities to improve: A ternativeDe ivery Met o s, Engineers Cost Estimates, an Construc-tion Change Order Management. is paper will address thefollowing:

    How a Best-in-Class workshop correlates with and utilizese VM met o o ogy;

    Composition of the VM Team(s) necessary to complete auccess u wor s op;

    How to conduct three workshops in three days with threen epen ent teams;

    General findings from each of the workshops includinge ecte Quic Hits;

    Creating a living document that allows the District tomplement selected ideas and modify the document to

    eet its ever-c anging uture nee s.

    e paper wi conc u e wit recommen ations or per-forming successful Best-in-Class workshops for any agency

    that shares a goal to self inspect their operations, accept change,an possess a sincere esire to e etter, i not t e est.

    Introduction

    rough the methodology of facilitated workshops con-ucte wit respecte in ustry consu tants nown to ave a

    wide degree of exposure and experience working with lead-ingedge companies, the Best-in-Class Benchmarking InitiativeProcess Ana ysis (PA) stu y soug t to i enti y est usinesspractices an or proce ures t at can e a opte y Metropo i-

    tan to enhance the Engineering Services Section performancein areas o a ternative project e ivery met o s, engineers cosestimating, an construction c ange or er management. eprimary objective was to identify the best business practices oleading-edge companies and agencies, and also identify pitfallto be avoided to increase the probability of project success.

    Wit an o jective o so iciting i eas an proposa s romoutsi e experts an not rom Metropo itan sta , a tota o 10independent consultants specializing in Alternative Project

    Delivery (ADP) Methods, Engineers Cost Estimating (ECE)an Construction C ange Or er (CCO) Management (t reeto our eac , re ative y) were se ecte to participate in t e Besin Class Benchmarking Initiative PA study. e PA study wasorganized in one pre-study meeting and three one-day work-shops to address the three topics.

    Goals

    In identifying the Best-in-Class processes for each of thethree topic areas, Metropolitan encouraged each team mem-ber to focus on general, holistic, best in class methods utilized

    in in ustry, speci ca y t e water in ustry, an not on t especi c practices o Metropo itan. Metropo itan assesse t eproposals generated at a later date, and determined how bestto adopt those proposals offering the most opportunity forimprovement of services. Below is a list of goals or suggestedo jectives t at were uti ize to stimu ate t e creative t oug tso t e teams.

    De ne w at ot er ea ing agencies companies (t e in us-ry) are oing to provi e t e est practice in eac area.

    Provide expert assessment on where the Water Industry

    s to ay wit regar to eac topic, an w ere it wi eomorrow.

    Identify how Metropolitan might then implement an imrovemen program.

    Suggest how the measurement of results might occur.

    Uti ize t e teams consi era e experience in i enti yingwhat they see as working and not working in the indus-ry.

    Re ne w at Metropo itan oes to assist a consu tant in

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    provi ing a qua ity pro uct.

    Provi e an inventory o w at a ternative project e iveryethods are used and what would be appropriate for this

    n ustry.

    Assess w et er t e ve c ass met o o t e Associationor the Advancement of Cost Engineering International

    (AACE) is t e pre erre estimating approac , or are t erether methods to consider.

    Identify external estimating programs that would be rec-mmen e to Metropo itan.

    Identify other sources of labor units, etc. (other thanMeans).

    I enti y externa estimating stan ar s t at Metropo itanight use.

    Assess the track record of Partnering and whether it hasproven to e success u in t e in ustry.

    A ress w at ot er owners are oing to negotiate, an e,onitor, and decide to proceed with their constructionange or er process.

    Base on t ese goa s, t e PA participants prepare a ist oproposals under each topic with rational and action items.

    State o Practice

    erna ve ro ec e very e o se traditional model for developing and operating pub-

    ic capita wor s in t e Unite States as een t e esign- i -

    build-operate model. ree basic parties constitute this mod-e : esigner, constructor, an owner operator o t e aci ity.Today, however, cities, towns and special districts across thecountry are ace wit t e unenvia e tas o e ivering capitaprojects with budgets that are not always in line with projectrequirements, time ines t at are signi cant y s ortene , orrisk profiles that do not align with owner capacities. Whilet e tra itiona mo e is we un erstoo , it as some in erentadvantages, and is the basis for much of the public works lawacross t e country. ere are s ortcomings t at owners aveaddressed by turning to a variety of alternative project deliverymet o s.

    ese organizations are looking for new, more innovativemeans o project e ivery, t at range rom construction man-agement at risk to design-build and design-build-operate toturn ey so utions t at incorporate nancing an owners ip.Accordingly, there are many variations of alternative deliveryt at may e app ie y organizations to meet t eir capita proj-ect needs. Owners must choose what best meets their need; anee t at is not necessari y static. Requirements an contextvary from project to project and many owners find that a toolox o so utions is t e est approac to maintain exi i ity

    an provi e t e greatest return on capita wor s investmenun s.

    e Best-in-C ass wor s op or a ternative project e iv-ery methods provided input on the large range of issues andpotential approaches for delivering capital works projects intodays environment, presenting some the many innovative

    approac es t at ave een success u y app ie across t e in-ustry.

    Engineers Cost Estimating

    In order to allow owners to properly budget for futureneeds, cost estimates must be available so that anticipatedneeds can be adequately evaluated. ese cost estimates cane wi e ranging, starting at a ue s y type estimate w ere

    t ere is no ata except a quantity we wi nee a 50 mi ionga on a ay water treatment p ant in t e xyz area arounyear 2015to the case where there is an exact location, 100% design, and a definite anticipated start date. Handling thisrange of estimating within the parameters of a variable andrapi y c anging pricing environment an g o a mar et con-

    itions is a very i cu t tas .e 5 class method of the Association for the Advance-

    ment of Cost Engineering International (AAEI) is the currently preferred estimating approach in the costing of water proj-ects. Especially important to their concept of estimating is theapp ication o t e appropriate contingencies an esca ations

    o e success u an accurate wit in t e parameters avai a eat the time the estimate is developed, the estimate should beperformed by people experienced in estimating, who have ac-

    cess to the proper tools: the Owners historical cost records fosimilar projects, published manuals for labor units, materialpricing, equipment renta rates, an in ation cost in ices areexamp es o require ata. I arge projects are routine y eingestimated, Owners are encouraged to use a proprietary esti-mating system.

    any projects in the water industry can be classified astypical work, work that is done routinely and repetitivelywor suc as insta ing runs o sma iameter pipe ines. His-torica ata wit cost in exing can e use to price t is type oproject. For larger more unique projects, a significant amount

    of time and effort is required to create a responsible estimate.It is important for Owners to note that engineering es-

    timates are a best guess at a specific point in time. For ex-amp e, t ose estimates prepare in August o 2005 were noonger va i in Septem er o 2005 (Katrina it August 292005). e Best-in-Class workshop addressed this point andexamined the many options available to Owners to improvethe cost estimates generated internally or received from con-sultants while effectively communicating the accuracy andmeaning o t ese estimates to ecision ma ers.

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    Construction Change Order Management

    Despite the fine efforts of Owners to define project re-quirements, and design professionals to produce complete,accurate an re ia e construction projects, virtua y everyproject experiences t e nee to mo i y, a to, or ot erwisea ter t e project a ter opening t e i s. C anges uring con-

    struction are a routine occurrence wit in t e water in ustry,where projects often involve modifications to existing complexfacilities (such as water treatment plants) or involve subsurfaceconstruction projects that, by their nature, carry some inher-ent risk and uncertainty (subsurface construction such as pipe-lines and tunnels). Change orders (i.e. alterations consideredwithin the scope of the original contract) may be necessaryto incorporate contractor suggestions, respon to un oreseensite con itions, or correct errors an omissions in t e p ans orspeci cations.

    ven t e most success u projects ave c ange or ers.What often separates successful projects from unsuccessfulprojects is how construction change orders are managed. Overthe last several decades the water industry marketplace partici-pants including owners, designers, construction managers andcontractors have developed industry standard practices, pro-cedures and tools to help manage construction change orders.Lea ing agencies an companies in t e water in ustry t at

    esign an construct projects ave eve ope est practicesw ic improve t e e ectiveness an e ciency o managingconstruction c ange or ers. Some o t ese est practices in-clude improvements in design procedures, construction con-tract writing, construction records management and tracking,

    construction management staffi ng, and improvements to con-struction management roles and responsibilities. During theconstruction change order management Best-in-Class bench-mar ing wor s op, many o t ese est practices were i enti-e , re ne an recommen e or potentia imp ementation

    on uture Metropo itan projects.

    Findings from Workshops

    A ter an intense t ree ays, t e t ree in epen-dent workshop value engineering teams generated nu-merous recommendations for consideration by Metro-politan. A total of 211 ideas (62 ADP; 69 ECE; and 80

    CCO) were i enti e uring t e Creativity Process romwhich 86 proposals (some consisting of combined ideas) wereprepared by the teams, with the balance rejected during theworkshops. ese were categorized into Quick Hit Proposaland ecommended Proposals. Each proposal contained a briefdescription justifying its recommendation along with a series

    of bullets indicating the steps or actions required for imple-mentation. e proposal presented below provides an exampleof the format utilized:

    se Alliance Contracting (Australian Model)/Form Joint

    enture between Metropolitan and Private Industry

    is suggestion proposes to evaluate and adopt a version ofthe alliance form of contracting. is pproach has been very successfully applied in Australia and the U.K. for public infrastructure projects and within the energy exploration field and heavyindustry for complex and high risk projects. For more in depthinformation, see attached white paper Introduction to Projec

    Alliancing located in Appendix F. Benefits of alliancing includassurance of better performance in non-process areas combinedwith likelihood of lower direct costs, greater certainty of on-timeor early delivery, better informed decisions on technical solutions,better balance between capital investment and life-cycle costs, andcollaborative management and alignment of commercial interestsConcerns include potential perception of uncertainty in cost out-comes, signi cant invo vement an commitment o Owner staan senior management to e e ective, an overa cu tura s i t

    Implementation:

    eview alliancing as a potential form of project delivery to beincluded in the Metropolitan portfolio of delivery options.

    I enti y t e potentia ega ur es t at must e overcome toma e a iancing an option or Metropo itan.

    Identify a team of Metropolitan personnel that would be specifically charged with defining and chartering potential al-liancing projects.

    Prioritize a ist o potentia Metropo itan projects to e e ivere un er an a iance contract. e approac requires e orn pro a y cannot e justi e or a projects.

    e Quick Hit Proposals were evaluated to be immediate

    Table 1. Type and Number of Proposals

    Performance Area

    Quick

    H ts

    elected

    Proposals

    Not Selected

    Proposals

    Current

    Metropolitan

    Prac ce

    Total

    Proposals

    Alternave Project Delivery Mehthods 8 15 0 8

    Engineers Cost Esmang 7 2 0 1

    Construcon Change Order Management 8 9 7 7

    OTAL 10 23 46 7 6

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    y imp ementa e to pro uce irect resu tsrelated to the goals of the PA study. Afterreview by Metropolitan management, thea ance o t e Recommen e Proposa s

    were either selected or not selected. Somewere oun to e current Metropo itan

    practice and were so indicated. is re-su te in o owing quic it se ecte notselected/current Metropolitan practicenum er o proposa s. (See a e 1, previ-ous page, bottom.)

    Quick Hit Proposals

    en quic it proposa s were se ecteas a result of the findings from the work-s op. It was e t y Metropo itan t at t eseten proposals could be implemented with-

    out any cross- epartment impacts or ap-provals. Reproduced below, as an example,is one o t ese quic it proposa s. It is pre-sented to demonstrate how Metropolitanis recording and tracking the action itemsan progress o eac proposa t at as eenselected. (See Table 2 right.)

    Findings From Workshops

    Appended at the end of this section oft e paper is a ta e isting a o t e propos-

    als considered by the Metropolitan WaterDistrict of Southern California. e colorcoding indicates how these proposals wereto be resolved (quick hits, selected propos-a s an not se ecte proposa s). ese eci-sions were based on the following consid-erations:

    I a proposa containe ene ts w ic appeare to out-weigh the cost of resources anticipated

    or research and implementation, it was selected for fur-er eve opment.

    If a proposal was considered to be cost prohibitive, it wasot selected.

    If there was a legal impediment, that is the current regula-ory framework of the State of

    California prohibited certain actions/methods by the Dis-rict, it was not selected.

    I a proposa was a rea y part y or comp ete y imp ement-d, it was so identified and not selected for further devel-pmen .

    Of the Quick Hit Proposals, three have been implemente , one is pen ing, our are anticipate to e comp ete ywinter 2009 an two remain un eci e . O t e 23 Se ecteProposals, three have been completed, five are anticipated tobe completed by winter 2009, no decision has been made re-

    garding 12 proposals, two are classified as being on-going, andone has now been considered to no longer be applicable due tocost concerns to t e District i t ey were imp emente .

    One accomp is ment t at came out o t e est practicesprocess was that Metropolitan created a prequalification lisfor urgent pipeline repair projects. at was covered underone of the proposals (16 & 17-QH below) that suggested thecreation of such a prequalification list. Successfully makingt is c ange as create more exi i ity in contracting or t eserepairs. It is e ieve t at t is sing e accomp is ment is a ig

    able 2. Construcon Change Order Proposal

    Construcon Change Order

    Proposal # 8 (#71)

    Perform Constructability Reviews/Lessons Learned and Proper Project Closeout

    Documentaon

    Summary:It is recommended that lessons learned documentaon be developed at the

    closeout of each project to address constructability issues that can be beer

    implemented on future projects and to compare change order frequency and

    cost to other similar projects. This is a process that should start at the beginning

    of construcon using design feedback forms, to keep the design team informed

    of problem areas unconvered in the documents or specific process issues noted

    during installaon and startup. Use this informaon as a transfer of knowledge

    to the design or construcon teams, as necessary, to limit future diffi cules or to

    promote technology or construcon pracces that went very well and should be

    implemented on future projects.

    con Item StatusDate of Compleon

    Ancipated ActualDevelop and use

    standardized forms

    to relay informaon

    from the field back to

    the design team dur-

    ing construcon.

    Current documentaon

    provides the Project

    Manager and Designer

    ith infomaon about

    the changes and issues

    that are occuring on the

    contract. As-built drawings

    also indicated what had to

    be changed in the field.

    Current pracce (for larger

    projects) is to perform a

    lessons learned analysis,although not always

    performed.

    Need Task Descripon for

    budgeng purposes.

    007 Completed

    Perform a closeout

    review and recom-

    mendaons docu-

    ment to idenfy the

    pialls and posivelessons learned on the

    project.

    Maintain budget to

    perform this task.

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    General Managers Best-in-Class List of Proposals

    egend

    Study Categories

    QH Quick Hit Proposals

    SP Selected Proposals

    NS Proposals Not Selected

    CP Current Metropolitan Pracce

    PROPOSAL

    NO.ROPOSAL STATUS

    A. Alternave Delivery Methods

    -NSAcvely Seek Statutory Authority for Design/Build; Issue Aggressive Legal Interpretaon of Exisng Status; Study

    Statute of Other States (Arizona); Use Caltrans Model to Establish Statute Authority

    2-NS Structural Design/Build Delivery Model that Fits Metropolitan and Industyr Constraints

    3-SP Develop Project Delivery Selecon Process Sept. 2009

    -SP Use Alliance Contracng (Australian Model)/Form Joint Venture Between Metropolitan and Private Industry Undecided

    5-NSConsider Appropriate Involvement of Third-party Advisors, Consultants, and Program Managers to Facilitate

    Successful Negoaons and Delivery of Projects

    6-NS Form Joint Powers Authority with Agencies that Have Design/Build Authority

    7-QH Survey Member Agencies and Private Water Companies to Understand How They Deliver Contracts Sept. 2009

    8-NS Opmize Standard Forms and Contracts

    9-NSDevelop Alternave Project Delivery Methods (APDM) Implementaon Team; Organize Separate Organizaonal Unit

    within Metropolitan for APDM

    10-QH Review and Update Metropolitans Exisng Metrics; Define Acceptable Metrics Sept. 2009

    11-SP Refine or Revise Metropolitan Business to Incorporate Alternave Project Delivery Methods Undecided

    12-QH Define Different Criteria for Lifeline versus Non-Lifeline Facilies; Use Design/Build in Non-Process Facilies Undecided

    13-NS consider Use of Design-Construcon Management at Risk

    14-SP Define the Opmum Risk Allocaon that Meets its Needs and Conforms to Best Pracces in the Industry Undecided

    15-SP Ulize Construcon Management at Risk as a Means of Projects Delivery Undecided

    6 & 17-QHConsider Task Order-Based Contracts for Small Projects and Develop List of Pre-Qualified On-Call Contractors and

    Design-BuildersSept. 2009

    18-SPIdenfy Small Business Enterprise Opportunies and Challenges with Alternave Project Delivery; Ulize Mentor-

    Protogee Program with Small Business Enterprise ProgramUndecided

    19-SP Ulize Incenve Contracng to Improve Project Delivery and Overall Performance of Delivery Teams Undecided

    20-NS Use Design/Build for Greenfield Projects

    21-NSUse Design/Build for Plant Modificaons with Mulple Measurement and Payment Provisions; Ulize Flexible

    Measurement and Payment Provisions for Rehabilitaon Work

    22-NS Do Not Use Design/Build for Projects that Will Employ Unproven Technology

    23-SPTie the Delivery Approach to Programmac Use of Building Informaon Systems or Three-Dimensional Models or

    Asset ManagementUndecided

    24-NS Ulize Design/Build/Operate

    25-NS Ulize Cost Reimbursable Contracng with Fixed Fee for Complex Facilies

    26-NS Consider Target Price Contracng

    27-NS Consider Open Book Negoated Design/Build Contracts

    28-NS Use Guaranteed Maximum Price Approaches with Shared Savings and Allowances

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    General Managers Best-in-Class List of Proposals

    Legend

    Study Categories

    QH Quick Hit Proposals

    P Selected Proposals

    NS Proposals Not Selected

    CP Current Metropolitan Pracce

    PROPOSAL

    O.PROPOSAL STATUS

    B. Engineers Cost Esmang

    29-NS Fine Beer Index than Engineering New Record Construcon Index

    30-NSReduce/Modify/Idenfy Onerous Front End Condions (Schedule, Liquidated Damages, Project Labor Agreements,

    Unforeseen Condions, M/W/SBE

    31-NSEvaluate Current Esmang Tools to Determine if They are Best-in-Class (Timberline, Mc2, US Cost, Success, Excel,

    Etc.)

    32-NSDevelop Database of Costs; Metropolitan Should Hire a Third Party to Develop Database; Find Industry Standard of

    Database for Esmang Accuracy (AACE)

    33-NSConsider American Naonal Standards Instute Method for Defining Cost Esmang Methods in lieu of Associaon

    of Advancement Cost Engineering Internaonal

    34-SP Invesgate Benchmarking Data from Construcon Industry Instute July 2009

    35-NS Conduct Market Analysis Prior to Preparing Engineers Esmate

    36-SPEstablish Esmang Standard for Mulple-Firm Esmates; Metropolitan (Possibly with Third-Party Consultants) to

    Develop Esmang ManualCompleted

    37-NS Provide Addional Budget to Complete Engineers Esmates; Establish Reasonable Budget for Engineers Esamte

    38-NS Develop Cost Factors

    39-NSPerform Monte Carlo Analysis to Idenfy Risk and Conngency and to Evaluate Which Risks are Driving the Upfront

    Costs and Whether it May Make Sense to Transfer Risk

    0-QH Provide Esmates Throughouth Design Process Completed

    41-SPEducaon Organizaon, Both Board and Management, on Goals for Engineering Esmates; Reeducaon of Board

    and ManagementOn-going

    42-SP Retain On-Call Consultants to Perform Cost Esmang N/A

    43-SP Educate and Train Metropolitan Esmators On-going

    44-NS Evaluate Salary Structure for Cost Esmang Staff (Adjust to Industry Standard)

    45-NSHave Construcon Type Rather than Engineering Type Conduct Cost Esmates; Ulize Consultants Constructors

    Division to Prepare Esmates

    46-NS Try Mulple Esmates on Several Jobs (Both Internal and External) to Compare and Review Differences

    47-NS Avoid Unfriendly Interface of Owner/Engineers/Designers with Contractors

    48-NSMeet with General Contractors to Discuss Front Ends and Possibly to Discuss Projects in Early Final Design (Ongoing

    Dialogue)

    49-NS Provide Incenves for Accurate Esmates to Metropolitan Staff and Consultants

    50-NSBe Aware of Bonding Problem for Projects Over $100 Million or Lasng Longer than Three Years; Have Discussion

    with Bonding and Insurance Companies to Beer Define Front-End Documents

    51-NS Understand the Consultant Engineers Track Record in Producing 100% Quality Design

    52-NS Hire Cerfied Esmators (in Difference Disciplines) and Hire Esmang Manager or Chief Esmator

    53-SP Apply Total Quality Management Tools to Cost Esmang June 2009

    54-QH Incorporate the Review of the Cost Esmate in Value Engineering Studies Completed

    55-NSControl the Addendum Process Where You Have Many or Complicated Addenda (Especially Close to the Bid Date);

    Honor Requests from General Contractors to Extend the Bid Date

    56-SP Comprise List of Esmang Consultants with Specialized Fields of Experse June 2009

    57-NS Consider Escalaon Clause Where the Owner and General Contractors Share Risk

    58-NSAllow the Modeling Tools Used by the Design Engineer to be Available to the Bidders (Three-Dimensional Modeling)

    - See also Proposal 23

    59-NS Allow Contractors to Create Alternate Bid on Modified Schedule

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    General Managers Best-in-Class List of Proposals

    egend

    Study Categories

    QH Quick Hit Proposals

    SP Selected Proposals

    NS Proposals Not SelectedCP Current Metropolitan Pracce

    PROPOSAL

    NO.ROPOSAL STATUS

    C. Construcon Change Order Management

    60-CP Perform Formal Risk Analysis of Design Documents; Idenfy Undefined Scope Items Current Pracce

    61-NS Upgrade and Enhance Construcon Administraon Management System

    62-CP Track Discipline of Change Orders (Structural, Mechanical, Instrumentaon, Electrical) Current Pracce

    63-NS Communicate the Reality of Change Orders to the Board of Directors and Research Industry Standards

    64-NS Consider More Use of Allowances

    65-NS Include Unit Price Costs in Contract for Change Orders (for High-Risk Items)

    66-SP Reduce Modificaon of Standard Specificaons Undecided

    67-NS Aract Qualified and Experienced Trade Contractors

    68-SPForm Internal Instrumentaon and Control Review Plan Check Team or Consider Commissioning a Task Force

    Aimed at Reducing Electrical and Instrumentaon and Control Change OrdersUndecided

    69-SPMetropolitan to Develop Construcon Standard Review Checklist for Use During Design Review (30%, 60%,

    90%) and Maintain to Keep CurrentUndecided

    70-QH Streamline and Improve the Change Order Process Pending

    71-QH Perform Constructability Reviews/Lessons Learned and Proper Project Closeout Documentaon Completed

    72-CPConstrucon Schedules: Establish Realisc Owner Goals and Mandate the Baseline Schedule; Ulize the Full

    Contract DuraonCurrent Pracce

    73-NS Conduct Presidents Walks on Job Site

    74-CP Consider Improving Operaons and Maintenance and Field Inspecon Inputs Current Pracce

    75-NS Improve As-Built Drawings

    76-CP Implement Pending Issue Log During Design Current Pracce

    77-CP Update Field Inspecon and Construcon Administraon Standards Manual Current Pracce

    78-SP Perform More Pre-Design Exploratory Potholing and Site Invesgaon Undecided

    79-QH Provide Adequate Budget for Design Services During Construcon Undecided

    80-SP Create an Educaon Program for Internal Staff and Resident Engineers Completed

    81-SP Iniate Designer Evaluaon; Perform Contractor Evaluaon (i.e., Model Both Aer Corps of Engineers Format) Undecided

    82-SP Implement Three-Dimensional Design - See Also Propoals 23 and 58 Undecided

    83-CP Idenfy Hazardous Materials Pre-Bid and Contract On-Call Services for Remediaon Services Current Pracce

    84-SP Rate and Ulize Partnering Facilitator Completed85-NS Consider Management of Escalaon in the Contract Documents

    86-NS Obtain Field Inspecon Staff Input and Bid Packaging.

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    win coming out o t e est practices process.

    Future Actions

    Once t e assessment o a o t e proposa s as een com-pleted by Metropolitan, it is planned that the results will bes are wit a o Metropo itans mem er agencies. In t is

    way, each of the member agencies will be able to benefit fromt e essons earne in t is process ana ysis wor s op so t atthe implementable Best-in-Class concepts would benefit all ofthe agencies operations. e member agencies would not berequire to imp ement t e same or a o t e concepts accepteby Metropolitan, but could pick and choose those most appro-priate to t eir operations. In t e ong run, a more consistentoperating procedure among the various agencies may evolveand would facilitate better communications and more uni-orm contracting, estimating an construction monitoring.

    e Best-in-Class Process Analysis Study is considered by

    Metropo itan to e a iving ocument, t at is, as new i easand approaches are implemented and tested to improve theDistricts practices, c anges may e ma e to t e ocumentto keep it up to date. ese changes may come in the form ofaltering a selected proposal to better meet the new needs of theDistrict, se ecting a previous y unse ecte proposa ecause ochanged conditions (for example new regulations that per-mit actions previous y pro i ite ), an remova o previous yselected proposals because they are no longer deemed neces-sary or economical or they have been superseded by improvedmet o s.

    Process Analysis Team MemberAcknowledgment

    Metropolitan selected consultants from leading-edge con-sulting firms to identify best business practices and/or pro-ce ures t at can e a opte y Metropo itan to en ance t eengineering services section performance in areas of alterna-tive project e ivery met o s, engineers cost estimating, anconstruction change order management. ese individualsmade up the process analysis (PA) teams and were responsibleor generating t e proposa s presente in t is report. As suc ,

    they deserve significant recognition and thanks for the effortrequire to comp ete t ese stu ies. In a ition, ey in ivi u-als from Metropolitans staff in each of the three topic areaswere inc u e in t e team.

    e studies were performed between January and Febru-ary 2007. e PA studies were led by Ron Tanenbaum, CVSrom Va ue Management Strategies, Inc. e PA team mem-

    bers are listed below:

    Ron Tanenbaum, CVS, Value Management Strategies,Inc. - eam Lea er

    As ey Carson, AVS, Va ue Management Strategies, Inceam Assistant

    Solomon Moore, Metropolitan Water District - Engineering Services Section

    ony Perez, Metropo itan Water District - ngineeringervices Section

    Brian Fo som, Metropo itan Water District - EngineerCost Estimating

    ric Anderson, Metropolitan Water District -AlternativProject DeliveryRon Brown, Metropolitan Water District - ConstructionC ange Or ers Peter unnic i e, Camp Dresser & McKee - A ternativProject Delivery

    ark E. Alpert, CH2MHill -Alternative Project DeliveryDan Wetstein, CH2MHill -Alternative Project DeliveryGary Meyerhofer, Carollo Engineers -Alternative Projec

    e iveryi e Doy e, Camp Dresser & McKee - Engineers Cos

    EstimatingDaniel Reynolds, CH2MHill - Engineers Cost EstimatingCharles George, Parsons Water & Infrastructure - Engineers Cost Estimatingomas Haid, Parsons Water & Infrastructure - Construction C ange Or ersKevin McEvoy, Camp Dresser & McKee - ConstructionChange Orders

    arry Johnson, MWH Constructors - Construction ChangeOrders

    Author Information

    Ron anen aum is a senior va ue engineer wit Va ue Management Strategies, Inc., an presi ent o GeoVa , Inc. Wit over 0years of teaching and consulting experience in geotechnical andcivil engineering, Tanenbaum is actively involved in value engi-neering, having participated in and/or facilitated over 100 VEwor s ops o w ic over 0 ave een or t e U.S. Army Corpo Engineers, 30 or transportation-re ate projects, an t e a

    ance most y or water/wastewater systems. As a mem er o SAVEInternational, he serves as the San Diego Chapter vice presidenof membership and is a Certified Value Specialist.

    Gordon Johnson is the chief engineer for the Metropolitan WaterDistrict of Southern California. Johnson has responsibility for alengineering activities, including management of a $4 billion capi-tal improvement program. Johnson is affi liated with the AmericanWater Wor s Association, t e Internationa Ozone Associationan t e American Water Resources Association.

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    nances, an in ormation rom t e u timate supp ier to t eultimate customer (Figure 1 c).

    e emergence of SC naturally brings about the evolutiono Supp y C ain Management (SCM). SCM is c aracter-ize y t e o owing:

    Using a systemic approach to SC, controlling thentire materia process rom procurement to t e naonsumer.

    Synchronization of internal and external processes for thentire SC process.

    Putting consumer demand into the focus.

    e emergence o SCM presents a new c a enge or man-

    agers, since it is no longer enough to solve the problems oftheir own company; they need to negotiate processes with theot er participants o t e SC w en esta is ing t eir own strat-

    .According to the Hungarian and international literature,

    SCM is concerned in short with the creation and develop-ment o t e o owing processes:

    Management processesIn ormation tec no ogy processes

    ogistic processesAlignment of technological processes

    After studying the most recent literature it can be established that there has been enormous development in the fieldo ogistics, ware ousing an in ormation tec no ogy part ywit a view to eve oping SC. We ave oun re ative itt e inthe literature on connecting technologies and on the align-ment of R&D activities.

    The Situation Of SC in Hungary

    e Hungarian industry is characterized by modern multinationa companies an ess eve ope sma an me ium-size companies (SMEs) in Hungarian owners ip. Joining in

    the supply chains of the multinational companies is an im-portant market opportunity for the Hungarian-owned SMEs99% o t e Hungarian in ustria companies ave ess t an 11employees; for them it is extremely diffi cult to establish goodmarket relationships.

    We wi present t e position o t e automotive in ustry int e SC as an examp e. Accor ing to t e researc one y Krisztina Demeter et al. (2004) the automotive SC is characterizedby Figure 2 (next page) (Demeter et. al., p. 4). Level 1 integra-tors are most y companies in oreign owners ip, w i e Leve

    Figure 1. TYPES OF CHANNEL RELATIONSHIPS

    SUPPLIER

    FIGURE 1 a. DIRECT SUPPLY CHAIN

    SUPPLIERS SUPPLIER ORGANIZATION CUSTOMER USTOMERSSUPPLIER CUSTOMER

    FIGURE 1 b. EXTENDED SUPPLY CHAIN

    THIRD PARTY

    LOGISTICS SUPPLIER

    ULTIMATE SUPPLIER ORGANIZATION CUSTOMER ULTIMATE

    SUPPLIER CUSTOMER

    FINANCIAL MARKET

    PROVIDER RESEARCH FIRM

    FIGURE 1 c. ULTIMATE SUPPLY CHAIN

    (Source: Mentzer, John T., DeWitt William, Keebler, James S., Min, Soonhong, Nix, Nancy W., Smith, CarloD., Zacharia, Zach G.: Defining Supply Chain Management. JOURNAL OF BUSINESS LOGISTICS, Vol.22,

    No. 2, 2001.) Figure 1. page 5.

    ORGANIZATION CUSTOMER

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    2 suppliers include several Hungarian-owned companies too.According to the analysis of the researchers Audi established asubsidiary in Hungary on the basis of resourceswell-quali-fied and cheap labor force and investment allowanceswhileSuzuki on market and resource basisvicinity of the Europe-an market and favorable costs. High quality, delivery on timeand competitive phase price are prerequisites for joining in theSC. A t e actors iste a ove can e e ective y improve ymeans o Va ue Met o o ogy; t is is w y connecting Va ueMet o o ogy an SC s ou e treate as a ig -priority is-

    .

    The Possible Connection Between Value

    Methodology (VM) and SC

    VM can be effectively applied in the following areas:

    Within the materials, parts and products process: pro-urement of materials, manufacturing of basic materials,anufacturing of parts and products as well as technology

    evelopment,

    sta is ing an eve oping ogistic systems,sta is ing an eve oping ware ousing systems,sta is ing an eve oping I processes,t cetera.

    In the past few decades we have mostly used the DirectSupply Chain solution (Figure 1 a.) in Hungary, though wecalled it Vertical Value Analysis rather than SC. e militaryin ustry in Hungary can not e seen as signi cant, so mosto our projects are mar et-oriente . Anot er specia eature ist at t e resources wit in a company were o ten not enoug to

    implement a new solution and we found the solution in thesupply chain.

    e establishment of SC in Hungary requires a significantchange in the attitude of the management of companies. Mar-ket economy is still in the process of evolution in Hungaryand according to our analysis there are significant shortfalls inmanagement. Managers are mostly interested in the effi cientoperation of workflows they are responsible for and often donot worry about problems regarding the connection betweenthe previous and the subsequent stage of the workflow. eproblem is further worsened by the fact that the connectionbetween each vertical system is controlled by traders, wheredelivery time, price, method of payment and the guaranteefor quality specified in certain documents (standards, customer specifications, governmental requirements, internationaagreements, etc.) are the main criteria. Experimental projects(leather and footwear industry, furniture industry, construc-tion industry, building and maintaining bridges etc.) all dem-onstrate that it would be important to ensure more effi cientcooperation between each vertically related unit in the case ofdelivery contracts or even in the case of R&D activities and

    the planning of investments. Effective technological connec-tions between each vertical system have high priority. Com-mercial agreements can not prescribe any technical conditionsthat would facilitate effective further processing.

    e issue of to manufacture or to procure emerges inthe case of every vertical system when planning different partsor units. value methodology can facilitate a sound and profes-sional decision.

    Experiences Gained through Value

    Mulnaonal OEM (Original Equipment

    anufacturer, End Product Assembler)

    Subsidiary SubsidiarySubsidiary

    Integrator

    1.

    Integrator

    .

    Integrator

    1.

    Level 2

    Supplier

    Level 2

    Supplier

    Level 2

    Supplier

    Figure 2. The automove industry pyramid

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    Analysis Projects

    Value Analysis of Providing Protective Clothing

    for Workers

    e company under investigation is a significant Hun-garian meat industry company with a professional history of

    90 years. As a private company, it was nationalized in 1949,just i e every ot er private company, an ecame a state-owne company. In 1992 it was trans orme into private im-ite company. o ay it emp oys near y 1,300 peop e. It wast e rst company in Hungary to receive t e MSZ EN ISO9001certi cate in 1992. Its major export mar ets inc u e t eUSA, South Korea, Japan, Spain, Germany, Sweden, Polandand Slovakia.

    xploration of the problem: Providing workers with pro-tective clothing is a sensitive issue at the company. Due to thetechnology used at the company the workers continuously getdirty, so the continuous supply of good quality work clothesis crucial. Due to the high rate of the washing cycle, the workc ot es quic y got amage an costs were constant y in-creasing. e procurement epartment cou not so ve t epro em; t ey sai t ey purc ase t e c eapest wor c ot esan t e pro em was most i e y cause y t e was ing tec -nology. To increase the effi ciency of the supply of work clotheswe launched a value analysis project.

    When preparing the project, we explored the followingpotential causal factors:

    Wor wear

    Mac ines an equipmentWor orceWas ing tec no ogy

    By inc u ing experts we came to t e o owing conc u-sions:

    e machines and equipment operated properly and didot need to be replaced.

    e wor orce was proper y qua i e an its re uctionwas not easi e.

    e was ing tec no ogy met eman s an simi ar tec -o ogies cou not improve t e qua ity o t e supp y o

    wor wear.

    We prepared a FAST diagram (Figure 3, next page) for thena ysis o wor wear.

    e analysis of the FAST diagram proved that the mainfactor responsible for the increased costs was cheap workclothes.

    Detai e ana yses s owe t at t e ig rate o waste in t ecase o current y use wor wear was ue to severa reasons:

    e materia o t e wor wear i not eep size (a terwashing a gown 20 to 25 times it shrank by some 10 to15 cm).

    Certain components o t e c emica agents use in was -ng accumu ate in t e a ric an cou irritate t e s in.

    We requeste anot er opportunity rom t e epartmenresponsi e or t e supp y o wor wear. On t e asis o was -ing tests we suggeste two new versions to e imp emente inthe supply of work wear.

    e costs are shown in Table 1 (below).

    Table 1. Annual Work Wear Costs in Million HUF

    (1 USD = 200 HUF)

    Currently

    sed Work

    Wear

    Proposed

    Work Wear Deviaon

    ashing Costs 6 6 0

    ork Wear Costs 4 10 -14

    otal 0 6 -14

    Note: e unit price of the proposed work wear was 25%ig er t an t at o t e current y use wor wear. e ig er uni

    price was o set y t e sign cant ecrease in waste.

    ention must a so e ma e o certain a se assumptionsconcerning costs. e genera attitu e: Lets uy t e c eapest materia s, parts, etc. W en examining t e procurement omaterials at companies we established that there is no cheap

    or expensive material; it is only function cost that can deter-mine the framework of effective resource utilization.

    The Application of Value Methodology in the

    Leather and Footwear Supply Chain

    Due to t e important ro e o exports in t is sector, t eootwear in ustry was a pioneer in t e app ication o va ue

    methodology. It soon became obvious that the leather indus-try played a key role in the competitiveness of the footwear in-dustry. e Ministry of Light Industry, and later the Ministryof Industry, in collaboration with other administrative bodiessupporte severa ten er projects to sprea t e app ication o

    VM. Experts an t e management o certain companies receive t e app ication o VM wit some reservation in a et at main y pro uce as ion pro ucts. e vertica structureof the leather and footwear industry is presented in Figure 4(next page). Figure 4 presents a complex structure, which isfurther complicated by practice. It is up to the managementof a footwear factory to decide what parts it produces andw at parts it purc ases. Wit a view to increasing exi i ityootwear companies manu acturing as ion pro ucts mainy pro uce so t eat er parts, t e upper eat er part an t e

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    ready shoes, while they purchase any other parts and auxiliarymaterials. Smaller footwear factories purchase the design andthe manufacturing documentation from external companies

    (SERVICE PROVIDERS) too.In t e past ew years we ave wor e out a VM mo e

    or procuring raw eat er, or t e eat er in ustry tec no ogy,t e ootwear in ustry tec no ogy an or ootwear pro uctp anning. Essentia y, we can say t at we ave a VM mo e ort e main processes o t e ootwear vertica system t at can einstant y app ie an taug t. e procurement mo e wor eout or raw ox i e as een a apte to t e procurement os eeps in too.

    The Role of Value on the SC System

    ost recent research calls attention to the importance of

    t e Va ue o usiness re ations ip. Accor ing to Man j anSimon: e Value of business relationship is an existing con-cept t at expresses use u ness an motivation recognize inor assigned to, a business relationship. Usefulness means theeconomic si e an motivation in icates t e socia si e o va -ue. Usefulness and motivation are value types that determinethe value of business relationships. Business relationship valuetypes both exist and change over time. e economic and so-cial value types exist at all three levels of business relation-s ips, t at is, at t e exc ange, re ationa , an networ eve s o

    Ensures supply

    of work wear

    Ensures protecon

    Resists stress

    Ensures easy cleaning

    Ensures repair

    Ensures an aesthec

    outlook

    Carries an adversement

    Protects against dirt

    Keeps size and shape

    Resists cleaning agents

    Applies a classical form

    Uses decoraon

    Idenfies a company

    Protects against mechanical

    mpact

    Preserves quality

    Repels dirt

    Figure 3. Customer Oriented FAST Diagram

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    ence t e c ose nature o in ivi ua SCs i er signi cant ywith one SC to the other. Certain SCs, e.g. in the automo-tive industry, are highly structured, and the manufacturers ofparts operate in accordance with detailed specifications. Onthe other hand, the participants in other SCs are just looselyconnecte . W en investigating SCs it appears to e easi e to

    study the special features of the Value of business relationshipw ic can signi cant y in uence ecision-ma ers.e experience gained through several value analysis proj

    ects s ow t at t e resources require or t e propose c ang-es could be procured from SC participants outside the givencompany. is is w y it is important or eac company tolearn more about the potentials and the framework offered byt e SC.

    Re erences

    Adam, Eric, Value Management, Longman Professionalelbourne, Australia, 1993.

    Adams, M. S. and Lenzer, W. F., Facets of FAST, SAVE In

    usiness re ations ips. Uti ity va ues are t e economic compo-nents of business relationship value, while motivation valuesare the social components of business relationship value. etwo va ue types are in c ose, ia ectic interaction wit eacother. In addition to this close interaction, there are determin-ing economic values.

    I we wis to wor e ective y in t e SC system, it seemsappropriate to get acquainted with the Value of business rela-tionship in detail and align it with our VM activities.

    Summary

    SC is a new type of economic structure that changes theformer competitive situation. It is not the individual productsut rat er t e in ivi ua SCs t at compete wit one anot er.

    Our ana yses s ow t at t e e ciency o t e SC can e sig-nificantly enhanced by the application of VM. One importantprecondition for effective R&D activity is to ensure the accep-

    tance o resu ts t roug negotiations wit t e ecision-ma ersof the SC even before work begins. Getting acquainted withthe SC seems to be quite feasible. According to our experi-

    Buyer of fashion shoes

    Retail stores selling footwear

    Wholesale companies collecng footwear(producon of domesc footwear companies + import)

    MPORTEXPORT,

    LEASED WORK

    OOTWEAR FACTORIES

    ASSEMBLY OF FOOTWEAR

    ASSEMBLY OF UPPERS MANUFACTURING OF SOLES PARTS

    CUTTINGS OF LEATHERS CUTTING SOLES (INNER SOLE)

    PROCUREMENT (SOFT LEATHERS, PARTS, AUXILLARY MATERIALS)

    SUPPLIER COMPANIES

    EATHER FACTORIES MANUFACTURERS OF PARTS MANUFACTURERS

    OF AUXILLARY MATERIALS SERVICE PROVIDERS

    RAW LEATHERS

    Figure 4. The vercal structure of the leather and footwear industry

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    ernationa Procee ings, 1997. 10- 18. pp.

    Bo ton, James D. an Naya , Bijay K., Imp ementation oValue Management with the Manufacturing SupplierCommunity. . SAVE Internationa Con erence, 200 .Jlius, Montreal, CANADA.

    Bytheway, Charles W., FAST Creativity Innovation, J. Ross

    Pu is ing, USA, 2007.C ancy, D. F. an L. M. Dennnis, e Innovation an App i-

    ation of the Value Based Design Charette Start YourProject Rig t to Ensure a Success u Comp etion, SAVEInternational Conference, 2004.

    Demeter, Krisztina an Ge ei An rea an Jenei Istvn, Avllalati stratgia hatsa az elltsi lnc menedzsment esz-zeire. 3. sz. M e ytanu mny. Bu apest Universityf Economic Science Public Administration. Vllalatgaz-asgtan ansz , 200 .( E ect o a rm strategic on too sf Supply Chain Management, Case study of Workshop

    No. 3., Department o Business Economy,)

    Hannan, Dona , Conceptua Design an Deve opment:Value Management at its Best, SAVE Proceedings Con-erence. May 5-8., 1991. Kansas City, Missouri, pp. 197-03.

    Hoffer, Ilona and Lux, Victoria, Possible means to consen-ua ecision ma ing, Internationa Va ue Engineering

    Conference 2008, Society of Hungarian Value Analysts SAVE Internationa , Bu apest, Hungary, Apri 10-11,

    008.

    Hoffer, Ilona and Plinks, Jnos, Value Driven Manage-ent at BVM PELEM Ltd., International Value En-ineering Conference 2008, Society of Hungarian Value

    Ana ysts SAVE Internationa , Bu apest, Hungary, Apri10-11, 2008.

    Ivnyi, Attila Szilrd and Ilona Hoffer, Development of Busi-ess and Innovation, Budapest, Hungary, 2002.

    Kaufman, J. J. and Woodhead, R., timulating Innovation inPro ucts an Services wit Function Ana ysis an Mapping,Wiley Interscience, USA, 2006.

    Kaufman, J.J., Value Engineering for the Practitioner, NorthCaro ine State University, 1990.

    Lavingia, N. J., Pacesetter Project Per omance wit Va ueImproving Practices, SAVE International Proceedings,1997. 1 8-150. pp.

    Mandjk, Tibor and Simon, Judit, An Integrated Concept onhe Value of Business Relationships. How could it be use-ul? 20th Annual IMP Conference, Copenhagen.

    Mentzer, John T., DeWitt William, Keebler, James S., Min,Soon ong, Nix, Nancy W., Smit , Car o D., Zac aria,

    ac G., De ning Supp y C ain Management, JournaOf Business Logistics, Vol.22, No. 2, 2001.

    Miles, L.D., Techniques of Value Analysis and Engineeringc.Graw-Hi Boo Company, New Yor , 19 1, 1972.

    Par er, D.E., Va ue Engineering eory Lecture out ine an reaing supplement, e Lawrence D. Miles Value Foundation

    Was ington, D.C., 1975.Sato, Yos i i o an J. Jerry Kau man, Va ue Ana ysis ea

    Down: A New Process for Product Development and Innovation, In ustria Press Inc. an Society o Manu acturing

    ngineers, New York, USA, 2005.

    Snodgrass, T.J. and Kasi, M., Function Analysis. e Steppingtones to Goo Va ue, University o Wisconsin, 198 .

    Stewart, Ro ert B., Fun amenta s o Va ue Met o o ogy , USA005.

    Aut or In ormationFerenc Ndasdi is a certified mechanical engineer, certified industria engineer, an pro essor o t e Co ege o Dunajvros w erehe delivers lectures on value management in a semester. Duringt e past 25 years, e participate in a out 500 va ue met o o ogyprojects as head of theme, head of team, member of team, expert,t esis consu tant, etc. N as i as written more t an 100 stuies, professional articles, and books. He is the vice president of theSociety o Hungarian Va ue Ana ysts.

    Value Worlds Accepting Submissions

    Value World is seeking scholarly papersabout the value methodology (value

    analysis, value engineering, value

    management). Do you have a newapplication, a new innovation, a case study?

    Send your paper to SAVE International at

    [email protected]

    Your paper will be forwarded to the ValueWorld editor for a peer review.

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    Genetic Algorithm in Designing Optimal Layout for Stock Plate

    Storage with a Unique Dimension of MaterialT. Yuri Zagloel and Heryadi Pamungkas

    Abstract

    ayout esign, in connection wit materia an ing in astorage area, affects the delivery time and cost effi ciency. Ge-netic algorithm approach is investigated to determine materi-als position in a chromosome, and allocate them in the moste cient ocation. Genetic a gorit m in ayout esign gives t emost effi cient way to relocate the materials and seeks for theshortest path to unload materials.

    is paper aims to find an optimum total distance for acrane to i t materia s. e optimum tota istance ma es t estacking managable and the materials easily lifted. A numberof previous studies support the correlation between optimiza-tion and Value Engineering. is paper disclosed the valueso taine rom Genetic A gorit m to e app ie in t e reastorage con ition.

    eywor s

    enetic a gorit m, optimization, ayout esign o storagearea, va ue engineering

    Introduction

    ayout design for facility purposes generally relates to ma-teria an ing an storage area, w ic signi cant y a ectethe delivery time to customers (Tomkins, et al, 2003). eimportance of faster delivery, for instance, has been studiedin outbound logistics which includes the warehouse manage-ment, transportation, an istri ution, an consequent y, asa signi cant in uence on t e e ciency o t e time-to-mar etof the supply chains (Lee and Leu, 2006). erefore, most ofmaterial handling studies focus on time-to-deliver the materi-

    a s to customers. Accor ing to Ba ou (1999), t e e ciency omateria an ing may e increase in our ways; capacity ousage, layout, storage equipments, and transportation.

    In terms of layout, material handling is related to stackingpro ems (De er et a , 200 ). e stu y ocuse on simu a-tion stu ies an use a gorit m as a met o o ca cu ation.Furthermore, genetic algorithm was also used in Layout De-sign of Deng, Lai, and Wu (2006), without considering thevarious imensions o materia s. Base on t is ac groun ,t is paper ea s wit storage esign or i erent types o ma-

    terials, in which each material has a unique dimension andi ting intensity.

    Genetic Algorithm in Layout Design

    Genetic a gorit m is a way o so ving pro ems y mimicking the natural process based on optimization of functionPrincipally, Genetic algorithm works with random solutionsin w ic initia ran om so utions are rst generate , an t en

    combined to create new solutions. Subsequently, all solutionare compared to eliminate the worst ones (Hicks, 2002).Per ormance o so utions in genetic a gorit m is measure

    by fitness value, bigger fitness value means more effi cient solu-tion. Mechanism of genetic algorithm starts with encoding thein ormation into gene, t en a genes are ran om y com ineto generate population (early solutions) formed by chromo-somes. Genetic operations use chromosomes of a populationto see or a etter so ution t roug crossover (com iningtwo solutions to generate two new solutions), and mutation(choosing randomly one of the new solution to be flipped inor er to o tain a etter tness va ue).

    For storage layout design, some adjustments are neededthe genes in storage layout design are the number of com-ponents, t e rectangu ar imension o eac component, anlocation (Gunasekaran, et al, 1999).

    at information is then converted into genes; the num-er o t e ocation is ca e p o (inc u ing t e num er o p o

    required for each component), the number of componenti ting intensity, an t e istance etween p ots (provi ein matrix). en, t ose genes orm c romosomes t at wibe randomly selected to generate initial solutions to create apopu ation. ose c romosomes are again ran om y se ecte

    to un ergo t e crossover. e c aracteristic o t ose c romo-somes are passed down to the descendants. ose descendantwi e compare ase on t eir tness va ue. In t is case, tness value shows the total distance of lifting and dropping op-erations. e bigger fitness value shows the shorter path of thetransportation process (Pai, et. a ., 200 ).

    Modeling a Genetic Algorithm

    is paper defines the implementation of genetic algo-rit m in a stoc p ate stac ing. e imension o eac p ate i

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    Table 1. Type of Plate, Material Specificaons, and Liing Intensity

    IDType of

    Plate

    Thickness

    (mm)

    idth

    (mm)

    Length

    (mm)

    Weight/Unit

    (Kg)

    Liing Intensity/

    Month

    (pcs)

    Area

    (m2)

    Weight/Area

    (kg/m2)

    Maximum

    Height

    (Unit)

    Stack

    (s)

    tack(s)

    Needed

    1 S41 C 74,65 135 2,97 25,12 358,28 0,38 1

    2 S41 ,5 1524 6096 328,18 150 9,29 35,33 254,78 0,59 1

    3 S41 5 1524 6096 364,64 20 9,29 39,25 229,30 0,09 1

    4 S41 6 1524 6096 437,57 150 9,29 47,10 191,08 0,79 1

    5 S41 6 1829 6096 525,15 100 11,15 47,10 191,08 0,52 1

    6 S41 8 1524 6096 583,43 150 9,29 62,80 143,31 1,05 2

    7 S41 8 1829 6096 700,19 100 11,15 62,80 143,31 0,70 1

    8 S41 9 1524 6096 656,36 60 9,29 70,65 127,39 0,47 1

    9 S41 9 1829 6096 787,72 0 11,15 70,65 127,39 1,00 1

    10 S41 10 1524 6096 729,29 20 9,29 78,50 114,65 1,00 1

    11 S41 12 1524 6096 875,15 40 9,29 94,20 95,54 0,42 1

    12 S41 12 1829 6096 1050,29 0 11,15 94,20 95,54 1,00 1

    13 S41 16 1524 6096 1166,86 20 9,29 25,60 71,66 1,00 1

    14 S41 19 1524 6096 1385,65 8 9,29 49,15 60,34 0,13 1

    15 S41 22 1524 6096 1604,44 8 9,29 72,70 52,11 0,15 1

    16 S41 25 1524 6096 1823,22 8 9,29 96,25 45,86 0,17 1

    17 S41 653,23 2 2,97 219,80 40,95 0,05 1

    18 S41 A 840,00 1 2,97 282,65 31,84 0,03 1

    19 S41 40 1524 6096 2917,16 2 9,29 314,00 28,66 0,07 1

    20 M490 6 1524 6096 437,57 170